[Congressional Record Volume 143, Number 128 (Tuesday, September 23, 1997)]
[Senate]
[Pages S9782-S9783]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
REGARDING PRODUCT LIABILITY REFORM
Mr. ENZI. President, I rise to briefly discuss S. 648, a bill to
establish standards and procedures for products liability legislation.
I am proud to be a cosponsor of that bill and I feel that it should be
a legislative priority for consideration during this session of the
105th Congress.
In the 104th Congress, both the House and Senate passed meaningful
product liability reform legislation only to have it vetoed by
President Clinton. The President now indicates that he wants to sign a
products liability reform bill. Legal reform has the broad support of
the American people and strong bipartisan support in Congress.
With each passing day, we are losing an opportunity to do the
people's business by not enacting common sense legal reform. S. 648 is
designed to inject some common sense into runaway punitive damage
awards in view of the need for some semblance of uniformity in our
National interstate commerce system.
Last May, the United States Supreme Court held in BMW in North
America v. Gore, that punitive damages can be considered so excessive
as to violate a defendant's constitutional due process rights. It seems
that many courts have not heeded this lesson. Just a few weeks ago,
another case received national attention for the enormity of its
punitive damage award. A jury in a Louisiana State court levied a $2.5
billion punitive damage award against CSX Transportation corporation
and $1 billion against the other defendants in the case for their
involvement in a 1987 tank car fire. The court
[[Page S9783]]
awarded this enormous punitive judgment despite findings by the
National Transportation Safety Board (NTSB) that CSXT did not cause the
accident and that no serious injuries resulted from the accident.
In light of these egregious examples, it is time for Congress to pass
legislation to reign in these exploding legal costs which have hurt
American businesses, stifled ingenuity, and punished consumers through
higher prices and decreased competition. S. 648 would mark an important
first step in reforming a tort system which all too often better
resembles a lottery than a forum of justice. I urge our leadership to
make S. 648 a priority in the first session of the 105th Congress.
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